Following a first quarter earnings report showing declining sales and earnings, Nippon Ichi issued a statement today saying that it will be incurring a special loss as it cancels three consumer game projects.

The three titles were in development since last year. The company determined that achieving sales and maintaining quality for the games could end up being difficult.

Due to the cancellations, Nippon Ichi will incur a one time ¥21 million yen loss.

Nippon Ichi's first quarter earnings report today showed sales of ¥293 million, a 40.6% drop from the same period last year. The company posted an operating loss of ¥15 million, down from the slight ¥12 million surplus of last year.

The game cancelations come despite the company's consumer games division actually being slightly in black this quarter with ¥32 million income on sales of ¥269.75 million.

Nippon Ichi released six titles over the quarter. Japan got a UMD version of Disgaea Infinite. Overseas markets got What Did I Do to Deserve This, My Lord!?, Disgaea Infinite, Trinity Universe, Viral Survival and Sakura Wars So Long My Love.